Hedge Funds find their groove in May

Posted Jun 21st 2007 6:20PM by Tom Taulli
Filed under: Apple Inc (AAPL)

Despite a surge in equities this year, hedge funds have been lagging (of course, not the fees). But things got much sunnier in May.

According to a report from Bloomberg.com, the hedge fund industry posted an average return of 2.16%. It was actually the biggest gain since January 2006. Yet, the returns for the year are still a meager 6.9%.

May's best fund manager was Stanley Druckenmiller. His $7.3 billion Windmill Master Fund posted a juicy 6.8% return (the annual increase is 11.6%).

Druckenmiller focuses on beaten-down securities as well as M&A plays. He's a veteran of the hedge fund world and once was the chief strategist for the legendary George Soros.

Some Druckenmiller's holdings include: Apple (NASDAQ: AAPL) and Nymex Holdings (NYSE: NMX).

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Tags: Hedge Funds, HedgeFunds